6 key recruitment trends you need to know in 2025

We’ve well and truly made a dent in 2025.

As we head further into the year, it’s more important than ever for recruitment agencies to have a plan on how they can stay ahead of the curve. JobAdder’s State of Recruitment 2025 Report takes a deep dive into key trends and insights that shaped the Australian market over the last year, as well as what’s likely to shake things up this year.

To set yourself up for success, these are the key trends that should be on your radar.

1. Hope for the job market to bounce back

Job demand took a hit in 2024, with Australia seeing a 5 4% dip in job creation. However, there are signs of stability ahead.

In the UK, where market trends often influence Australia, job demand saw only a 3 4% decline, indicating potential improvement on the horizon.

While we wait for an upswing, savvy agencies are using this time to strengthen relationships and refine their strategies.

2. Applications at an all-time high

A whopping 42% surge in job applications means recruiters are busier than ever More candidates might sound like a dream, but managing that influx is a real challenge.

The agencies winning the game? Those using tech and automation to keep things smooth without losing the human touch – which 69% of agencies are already doing.

3. Temp roles continue to take over

The shift towards flexibility is undeniable. In Australia, temp roles now make up 80% of all agency placements, reflecting the growing demand for agile workforce solutions.

Businesses want flexibility and agencies who can deliver fast, high-quality temp solutions So the real question is; does your agency have the capability and tech to meet those needs?

4. Business development has some room for improvement

There’s a growing gap between new job creation and placements, meaning agencies need to up their business development game if they want to surge ahead of the competition. Only 5% of agencies say they’re happy with their current BD strategy, so if you’ve been winging it, this is your sign to rethink your approach.

5. Rethinking job ads vs. proactive sourcing

It’s time to move away from relying so heavily on job ads. Right now, 79% of applications in Australia come from ads, yet agencies using their own candidate databases are placing roles 5.6x faster.

Why waste time and resources when the right talent is already in your system?

6. The money squeeze is real

With agency costs rising and fee structures shifting, it’s essential for agencies to find creative ways to keep profits up without cutting corners on service quality. Some agencies are embracing offshoring, while others are doubling down on efficiency through tech and smarter processes.

We were grateful to have been joined by Lesley Horsburgh, Managing Director of APSCo, for the State of Recruitment webinar, where she shared some fantastic insights into why these key recruitment trends are coming about in 2025..

“2024 has presented tough conditions for the Australian market. Unlike previous downturns, this has been markedly different in that it’s been incredibly hard to forecast, largely due to its unpredictability.

Patchy is how I’d best describe the year, with fluctuating demand driven by economic uncertainty.

Layered with some of the tightest industrial relations regulation in the world and the rise in cost to operate in Australia, leaders are feeling the pressure to further tighten their belts.

Controlling the controllable is the only strategy that will leave leaders well poised for a market that will inevitably bounce back.

That means leveraging efficiencies through automation and AI, relieving costs through offshoring, and a returned focus to business development.”

Want the full scoop?

This is just a sneak peek of what’s inside JobAdder’s State of Recruitment 2025 Report.

If you’re serious about staying ahead of the competition, download the full report now and get the insights you need to level up your recruitment.